Thank God for big mercies! That’s what the bulls may have thought during the Republic Day holiday. The situation, however, does not seem to have improved. Today, we expect a weak start as global cues are indecisive. The SGX Nifty is showing a sharp fall. The F&O expiry and uncertainty all around will only add to the volatility.
The events to keep an eye on for the coming days include today’s Fed announcement, the RBI policy meeting on Friday and of course the spate of earnings.
Though the Nifty has managed to stay above 5000 in the face of the sudden worsening of sentiment, the bulls have been at the receiving end following the recent selloff.
The Nifty could rebound from 4930-4950 levels and 5000 remains a critical level to watch. If the selling persists a bit more, the Nifty could fall as low as 4840. On the way up, resistance is expected to kick in at around 5120.
